IAIS Publishes Application Paper on Recovery Planning
IAIS published the final application paper on recovery planning, along with the resolution of comments on the draft application paper. The consultation on the paper ran from November 2018 to January 2019. The application paper provides guidance with respect to supervisory material on recovery planning in the Insurance Core Principles (ICPs) and ComFrame. The paper is related to the material in ICP 16.15 and ComFrame 16.15.a and 16.15.b (ICP 16 on enterprise risk management for solvency purposes). The paper is also relevant to supervisory cooperation and coordination arrangements set out in ICP 23 on the group-wide supervisor and in ICP 25 on supervisory cooperation and coordination.
The paper addresses issues that were identified in the development of the material, including feedback received from members and stakeholders during public consultations. The issues involved both the nature of a recovery plan and the roles of the supervisor and insurer with respect to the plan. The paper provides recommendations and guidance to supervisors regarding recovery planning and cooperation and coordination between supervisors. It also provides additional information for insurers with regard to recovery planning, along with the examples illustrating application of principles, standards, and guidance relevant to recovery planning. The key topics covered in the paper include the following:
- Objectives and concepts of recovery planning
- Requirements for recovery plans and the application of the proportionality principle to recovery planning
- Governance-related matters in recovery planning, including the development and approval process of a recovery plan and how a recovery plan relates to the overall risk management of an insurer
- Key elements of a recovery plan and examples of how these can be addressed in a recovery plan
- The role of the supervisor (or supervisors in a cross-border group) in recovery planning
Keywords: International, Insurance, Recovery Planning, Proportionality, ICP 16, ICP 23, ComFrame, Recovery and Resolution, Governance, IAIS
Related Articles
BIS and Central Banks Experiment with GenAI to Assess Climate Risks
A recent report from the Bank for International Settlements (BIS) Innovation Hub details Project Gaia, a collaboration between the BIS Innovation Hub Eurosystem Center and certain central banks in Europe
Nearly 25% G-SIBs Commit to Adopting TNFD Nature-Related Disclosures
Nature-related risks are increasing in severity and frequency, affecting businesses, capital providers, financial systems, and economies.
Singapore to Mandate Climate Disclosures from FY2025
Singapore recently took a significant step toward turning climate ambition into action, with the introduction of mandatory climate-related disclosures for listed and large non-listed companies
SEC Finalizes Climate-Related Disclosures Rule
The U.S. Securities and Exchange Commission (SEC) has finalized the long-awaited rule that mandates climate-related disclosures for domestic and foreign publicly listed companies in the U.S.
EBA Proposes Standards Related to Standardized Credit Risk Approach
The European Banking Authority (EBA) has been taking significant steps toward implementing the Basel III framework and strengthening the regulatory framework for credit institutions in the EU
US Regulators Release Stress Test Scenarios for Banks
The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).
Asian Governments Aim for Interoperability in AI Governance Frameworks
The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.
EBA Proposes Operational Risk Standards Under Final Basel III Package
The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.
EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS
The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.
ECB to Expand Climate Change Work in 2024-2025
Banking regulators worldwide are increasingly focusing on addressing, monitoring, and supervising the institutions' exposure to climate and environmental risks.